Organisations are adopting new technologies nearly every day with the aim of streamlining their processes. This, in turn, helps boost efficiency. However, a study entitled Sourcing Cycle Time and Cost Measurement Study by the Hackett Group reveals that for every $1bn a company spends, it has only 16 full-time employees in its sourcing department. This means that sourcing departments are not adequately staffed, occasionally causing them to lag behind the rest of the business.
Need for digitisation
Overworked sourcing professionals are spending too much time engaged in manual tasks. This affects their productivity and output. However, when companies make an effort to digitise certain duties, it can have a profound effect on their overall efficiency as well as the effectiveness of the procurement department.
By giving the sourcing team the necessary resources to function optimally, it will ensure the team can keep up with the other departments in the organisation, augmenting the functioning operations of the entire enterprise. This is where digital transformation can prove to be invaluable.
Using technology to make the entire procurement process efficient and quick will allow sourcing professionals to contribute meaningfully to the organisation and also give the company a competitive edge. This way, the organisation will be better equipped to meet the demands of its stakeholders.
Digitisation can shorten the sourcing cycle
Research shows that a typical sourcing cycle ranges from one day for strategic sourcing to about 120 days for complex purchases. However, nearly half of the cycle is spent evaluating the supplier and completing the contracting process. These workflows can easily be streamlined with the help of technology. This will allow the sourcing professional to focus on the strategic elements, as well as more complex aspects of sourcing.
Digitising the contract lifecycle management and the e-sourcing process to find the right suppliers can save time, effort and money. It will also help cost reduction, minimise errors in data collection and above all make the entire sourcing process quick and hassle-free.